I am often asked what are the Top 5 Budgeting Tips. A budget means spending your money in a planned manner. A good budget is a spending plan that includes everything you will spend money on and stays within your income. A wise budget includes everything you will spend money on, savings for a ‘rainy day’, savings for large purchases, giving, savings for kids, and investment for retirement and still stays within your income
It is very important to make a budget as by doing so we can keep a check on our expenses. Let’s have a look at the top 5 budgeting tips, which would help you save money as well as spend it where ever necessary.
Tip 1: Collect all the credit card statements and cash receipts. Then make a statement of your income and expenses where you might spot potential savings to be made and make a record of all the expenses.
Tip 2: Convert regular weekly pay to monthly: Weekly Pay x 4.333 = Monthly Pay Convert bi-weekly pay to monthly: Bi-Weekly Pay x 2.167 = Monthly Pay Convert annual totals to monthly amounts by dividing the total by 12.
Tip 3: Keep a track of all your expenses without being impartial. And remember to review your budget in line with changes to your incomings and outgoings. This could be a good budgeting tip.
Tip 4: Make sure you keep a savings balance for a “rainy day” that matches 6 months of your net income. After you’ve accumulated that, you can begin investing and buying some of those things you just want.
Tip 5: Giving or donating is as important as you pay your bills. You should have an amount designated on your family budget for giving. Even if you don’t take part in a regular charity or church giving program, make giving part of your budget. There is a great deal of evidence, from 2,900 years ago right up to the present, that what you give comes back to you multiplied.
See our reviews of budgeting software, including YNAB, Quicken and EasyBudgeter to mention a few. Secure your copy today and be on your way to financial freedom!
At YourBudgetAngels we create financial software reviews and promote budgeting methodologies to help people get out of debt, and save money. We aim to assist users to have a complete understanding on budgeting, how it works, why it is important and also detail reviews of as many personal financial software available to assist people managing their budget and saving money.